The Industrial Employment Act requires employers in industrial establishments (including any factory or any industrial establishment to which the Payment of Wages Act applies) to define the conditions of employment for their employees. Such conditions should be within the knowledge of the workmen employed.

As per the Industrial Employment Act, detailed standing orders have to be drafted as per specific needs of the industrial establishment in order to define conditions of employment like classification of workmen, norms of discipline, code of conduct, misconduct, procedures for suspension/ initiating disciplinary action against erring employees/ imposing minor or major penalties. The standing orders for an industrial establishment are required to be certified by the relevant certifying officer appointed.

The Industrial Employment Act also prescribes model standing orders which provide the scheme and basis for standing orders to be certified.

• Every industrial establishment is required to maintain a service card in Form V, in respect of each workman comprising of, amongst other things, his name, religion, educational qualifications, address and employment history.

Penalty

Any employer who fails to submit draft standing orders or modifies the standing orders in contravention of the Industrial Employment Act, is punishable with fine extending up to Rs. 5,000 (Rupees Five Thousand only). Further, where a contravention is of a continuing nature, the adjudicating authority concerned may impose an additional penalty of up to Rs. 200 (Rupees Two Hundred only) per day for the period of continued contravention.

Any employer who breaches the standing orders as certified, pursuant to the Industrial Employments Act, is punishable with fine extending up to Rs. 100 (Rupees One Hundred only). Further, where a contravention is of continuing nature, the adjudicating authority concerned may impose an additional penalty of up to Rs. 25 (Rupees Twenty Five only) per day for the period of continued contravention.

Application Guidelines / Responsible Persons / Comments

The Industrial Employment Act applies to every industrial establishment where 100 (one hundred) or more workmen are employed or were employed on any day of the preceding 12 (twelve) months.